Tax reference guide 2017 (hcf) final

About HCF The Hawai‘i Community Founda on has served the people of Hawai‘i since 1916. We steward more than 800 funds and over $640 million in charitable assets. In 2016, we distributed over

We help those who do good, do greater.

$47 million in grants and contracts to the community and it was made possible by our donors, clients, and partners.

What We Promise We enhance the lives of those in need and enrich the lives of those who give.

We create partnerships to

If you would like to learn more about how the Hawai‘i Community Founda on can help you create the greatest impact with your charitable giving, please contact us: O‘ahu Hawai‘i Island Hilo Kamuela Kaua‘i Maui

808-537-6333 808-935-1206 808-885-2174 808-245-4585 808-242-6184

tackle tough problems and build stronger communi es.

We transform people’s generosity into las ng change.

We share a century of experience to make giving more effec ve.

HawaiiCommunityFounda on.org

Tax Reference Guide 2017

2017 Tax Reference Guide Federal Estate, Gi@ & GST Taxes

Federal Income Taxes

Estate & Gi@ Tax Exclusion Amount (indexed)

$5.49 million

GST Tax Exclusion Amount (indexed)

$5.49 million

Top Federal Estate/Gi@ Tax Rate Portability?

Top Income Tax Rate: Everyone Else

35%

Top LTCG Rate: “High Income Taxpayers”

20%

Top LTCG Rate: Everyone Else

15% 20% 15%

39.6% (over $12,500)

Ability to Fix GST Tax Misalloca0on?

YES

Top Dividend Rate: “High Income Taxpayers”

State Death Tax Deduc0on?

YES

Top Dividend Rate: Everyone Else

Annual Exclusion (indexed)

$14,000

Annual Exclusion – Non-U.S. Ci0zen Spouse (indexed)

$149,000

Itemized Deduc0ons Limita0on: “Upper-Income Taxpayers” (taxable income over $261,650 individuals; $313,800 married couples, indexed)

Itemized deduc ons reduced by 3% of AGI over floor, but not by more than 80% of deduc ons

Standard Deduc0on

$6,350 single, MFS $9,350 HOH $12,700 Joint

Hawai‘i Estate & GST Taxes Time to File

Same day as federal return

Filing Extension

IRA & Pension Limits 39.6%

40% YES, for Estate & GiD Tax Exclusion Amount

Top Trust & Estate Income Tax Rate

Top Income Tax Rate: “High Income Taxpayers” (taxable income over $418,400 individuals; $470,700 joint)

AMT Exemp0on Amount (Indexed)

$42,250 MFS $54,300 single, HOH $84,500 Joint

Personal Exemp0on Phase-Out: Upper-Income Taxpayers (Indexed)

Reduced by 2% for each $2,500 or por on thereof by which the taxpayer’s AGI exceeds the applicable threshold level.

Granted if federal filing extended

Annual Contribu0on Limits 401(k), 403(b), most 457 Plans and Federal Government Thri@ Savings Plan

$18,000

Catch-up Contribu0on for Employees 50 and Older

$6,000

IRA Annual Contribu0on Limit

$5,500

IRA Deduc0on Phase-Out (Based on MAGI for Taxpayers Covered by Workplace Re0rement Plan)

$62,000 - $72,000 single, HOH $99,000 - $119,000 MFJ

Roth IRA Deduc0on PhaseOut (Based on MAGI)

$118,000 - $133,000 single, HOH $186,000 - $196,000 MFJ

AGI Limit for Re0rement Savings Contribu0on Credit

$31,000 single, MFS $46,500 HOH $62,000 MFJ

Tax-Free Charitable Roll-over from IRA for Individuals 70½ and older

$100,000

Hawai‘i Community Founda0on Charitable Fund Types Payment Extension

Granted if federal payment extended

Estate Tax Exclusion Amount (same as Federal Exclusion)

$5.49 million

Top Estate Tax Rate Applicable GST Tax Rate Portability?

15.7% 2.25% x inclusion ra o YES, for Estate Tax Exclusion Amount

Civil Union Marital Deduc0on?

YES

Gi@ Tax?

NO

Hawai‘i Income & General Excise Taxes Top Income Tax Rate

8.25%

LTCG Rate

7.25%

Top Dividend Rate

11%

General Excise Tax

4%

O‘ahu County Surcharge

0.5%

Health Care Taxes Health Care Surtax: “High MAGI Taxpayers” ($200k of MAGI for individuals; $250k for married couples, $125k for married filing separate; $12,500 for trusts; indexed)

3.8% on the lesser of (1) net investment income; or (2) the excess of MAGI over the threshold amount.

Hospital Insurance Withholding Surtax: “High Earned Wage Income Taxpayers” ($200k of MAGI for individuals; $250k for married couples, $125k for married filing separate; NOT indexed)

0.9% on earned income in excess of earned wage income threshold amount.

Medical Expense Itemized Deduc0on Limita0on

Donor Advised Fund/Signature Fund – Allows a donor (or someone the donor selects) the right to recommend grants from the fund over me.

An inexpensive alterna ve to private founda ons.

Designated Fund – For donors who want to support a specific charitable organiza on while ensuring the funds are u lized consistent with the donor’s wishes.

Field of Interest Fund – Allows a donor to define one or more areas of charitable concern. The field may be as broad as “Maui County”, “girls & women”, “the environment”, or “health and welfare”, or as specific as “early childhood literacy”.

Catalyst Fund – This fund enables the development of strategies to grapple with important local challenges, strengthen leadership within Hawai‘i’s nonprofit community, and promote collabora ve partnerships among donors to make the greatest impact.

Scholarship Fund – Provides post-secondary educa on scholarships to individual recipients. Grants may be awarded to the individuals or they may be awarded to educa onal ins tu ons.

10% of AGI

The informa on in this handout is provided “as is” and is for general educa onal purposes only. Hawai‘i Community Founda on, their respec ve employees, and agents specifically disclaim any and all liability and loss of risk incurred as a result of the use and applica on, either directly or indirectly, of the material contained in this educa onal handout, whether or not negligently provided.

Charitable Gi@ Annuity (CGA) – A giD through a CGA to the Hawai‘i Community Founda on provides the donor and/or a loved one a fixed payment for life. At the death of the last annuitant, the remainder establishes a fund to fulfill the donor’s charitable wishes.